Rice buildup in port could mean holdout for better prices — PPA

By Kyle Aristophere T. Atienza, Reporter

HUNDREDS of containers bearing rice remain unclaimed in port, with the port regulator saying that importers may be awaiting better market prices or trying to save on warehousing costs.

Speaking at a Palace briefing, Philippine Ports Authority (PPA) General Manager Jay Daniel Santiago acknowledged the possibility that importers were timing their withdrawals of rice from the Manila International Container Terminal with an eye towards market prices and storage costs.

Market conditions are at the moment not favorable to importers because of government efforts to lower rice prices, including the reduction in tariffs, he noted.

Mr. Santiago said the shipments that had been overstaying totaled 888 containers, of which 300 were claimed this weekend after the authorities warned that shipments were building up.

Mr. Santiago added that the ports are not congested. He was addressing claims that the slow unloading of imported rice shipments is delaying the expected fall of rice retail prices, foiling government plans to contain inflation.

Mr. Santiago noted that keeping containers in port is cheaper than holding shipments in private warehouses.

“Because of our exposition of overstaying containers of rice, 300 containers were pulled out by their consignees at the weekend,” Mr. Santiago said.

He said options for the disposal of the shipments deemed abandoned by the Bureau of Customs include auction or donation to government agencies like the Department of Social Welfare and Development.

Some of the shipments will be declared abandoned starting Oct. 1, he said.

Agriculture Undersecretary Arnel V. de Mesa said the 888 containers held about 23,000 metric tons (MT) of imported rice, equivalent to 0.75% of all imports so far this year.

Imports in the year to date amounted to 3,093,000 MT.

“This is just a small amount, but if we look at the absolute value, this is still 23,000 metric tons,” Mr. De Mesa said.

The Bureau of Customs at the weekend said only 630 containers of rice remained at the port, noting that none of the shipments still unclaimed were staying in excess of 30 days.

Mr. Santiago cited instances of containers remaining in port for as long as 275 days.

The government will monitor other commodities like pork, chicken, and onions to ensure they are not overstaying, Mr. De Mesa said. 

Agriculture Secretary Francisco Tiu Laurel, Jr., has said that the delayed release of rice imports from ports was a factor in the delayed fall in rice prices.

The government aims to reduce rice prices by P5 to P7, in part by bringing in cheaper imports.

Inflation eased to 3.3% last month from 4.4% in July, as food price growth moderated while transport costs declined.

The share of rice in inflation fell to 14.7% from 20.9% in July and 22.5% in June.  It remained the largest component of inflation in August.